# Morses Club remains in a robust overall financial position

- Link: https://www.directorstalkinterviews.com/morses-club-remains-in-a-robust-overall-financial-position/412810368
- Published: 2020-03-30T07:21:32+01:00
- Author: Giles Arbor

**[Morses Club](https://www.directorstalkinterviews.com/company/morses-club-plc/mcl.l)
PLC** ([LON:MCL](https://www.directorstalkinterviews.com/company/morses-club-plc/mcl.l)),
an established provider of non-standard financial services, provided today an update
in relation to the Group’s response to COVID-19. The Company continues to assess
the impact of the current situation on the business, proactively adapting its activities
in line with Government advice, with the health and wellbeing of its customers, 
employees and agents central to the changes made.

The business has quickly introduced wide-ranging adaptations to its operating model,
to ensure that customer service is maintained. This includes all operational field
management and agents now working from home and face-to-face customer visits replaced
with a remote customer communication strategy. Morses Club is maximising the usage
of its existing technology platform and payment methods to ensure that customer 
contact and collection activity can be maintained. Over 82,000 customers are now
registered for the online customer portal, and the Company offers a range of remote
payment methods, through which 41% of all collections were already completed remotely.
Customer response to paying remotely has been very strong since the impact of COVID-
19, with all agents and field managers now focused on collections and engaging with
our customers through the comprehensive technology already in use across the business.

As a business, our focus will always be on lending responsibly and conservatively,
putting the customer first. Therefore, at this stage, we are no longer extending
credit to new customers. Our normal adherence to Treating Customers Fairly principles
and forbearance continues. We are actively working on further adaptations to the
model, in line with our regulatory permissions.

Over 50% of our customers are in receipt of state benefits or pension earnings and
a significant proportion of our customer base is self-employed. The recent Government
announcements regarding grants for the self-employed, and maintenance of 80% of 
earnings for employees who may become furloughed workers, are expected to help our
customers to maintain levels of income.

Morses Club remains in a robust overall financial position, and positive negotiations
continue with existing funding providers. Cash flows are being supported by the 
temporary cessation of home collected credit loans, significant tightening of online
lending decisions, cutting discretionary expenditure and the increased focus on 
collections.

The Board recognises the difficulty in fully assessing the long-term macroeconomic
impact of COVID-19 on the business and therefore considers it prudent to withdraw
its financial guidance for FY21. In full consideration of all relevant circumstances,
the Board will not recommend payment of a dividend in July and will review the capacity
to make a payment at the appropriate time later in the year, once the impact of 
COVID-19 on Morses Club’s business has become clearer.

The proposed date for the release of our final results for the period ended 29 February
2020 is currently under review with our auditors. Our results, which we had intended
to announce on the 30 April 2020, will now be published at a later date due to the
backlog of work facing all auditors as a result of changes to corporate reporting
due to COVID-19. We will update the market on the revised proposed date when we 
have clarity from our auditors on timing.

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